Technical Analysis of Gold for May 16, 2016
Technical outlook and chart setups:
Gold is seen to be trading higher for the day at $1,278.00 levels at this moment and is soon approaching a resistance zone around $1,280.00/82.00 levels. A push above $1,282.00 levels would open doors for a test of $1,295.00 levels at least. Please note that probability still remains for a test/push above $1,303.00 levels before turning lower again. On the flip side, a clear break below the trendline support would indicate that a meaningful top is in place and that the yellow metal is set for a deeper correction. It is hence recommended to remain short from here, with risk above $1,295.00 levels. Immediate resistance is seen at $1,295.00 levels, while support is seen through $1,256.00 levels respectively.
Remain short for now, stop at $1,297.00, target is open.